Basel, 10 July 2003 - Novartis (NSYE: NVS) announced that its affiliate companies have reached an agreement with GlaxoSmithKline (NYSE: GSK) over lawsuits related to GSK's claimed Augmentin trade secrets. The lawsuits were filed with the US International Trade Commission (ITC) and state courts in Colorado and North Carolina.
Under the terms of the agreement, GSK will receive single-digit percentage royalties on US sales of generic versions of Augmentin sold by Novartis or its affiliate companies for the four-year period from July 2002 through June 2006.
Further details of the settlement agreement remain confidential. The termination of the ITC proceeding is subject to approval by the Administrative Law Judge and the ITC.
Novartis remains committed to ensuring that its high quality generic alternative continues to be available to prescribers and their patients in the US.
The agreement does not affect GSK's appeal against Novartis' subsidiary Geneva Pharmaceuticals relating to Augmentin patents. The US Court of Appeals of the Federal Circuit heard the patent appeal case on 5 March 2003 and a decision is expected this year.
The media release can be downloaded from the following link:
